EU approves 75 million euros in additional support for AU Somalia peacekeeping mission
via The Reporter Ethiopia6 min read
The European Union's Political and Security Committee has approved an additional 75 million euros in support for the African Union's peacekeeping mission in Somalia, the Support and Stabilization Mission in Somalia AUSSOM, through the European Peace Facility EPF. This new funding brings the EU's total support to AU-led missions in Somalia to nearly 2.8 billion euros since 2007. The funds will primarily cover troop allowances for personnel deployed in Somalia, as well as non-lethal equipment and related services. AUSSOM, which replaced ATMIS in January 2025 and is extended through 2026, continues to face a significant funding gap, leading to arrears in payments to Troop Contributing Countries TCCs such as Uganda, Kenya, Ethiopia, and Djibouti. TCCs are expected to deploy up to 11,800 uniformed personnel, including 680 police personnel, to AUSSOM until December 2026. The estimated budget for the year leading up to June 2026 is approximately USD 190 million. Despite donor funding from various sources, the mission's long-term financial situation remains precarious due to its reliance on fragmented, non-sustainable funding, compounded by a resurgence of Al-Shabaab militants. The EU remains the largest direct contributor to successive AU missions in Somalia.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
The National Bank of Ethiopia NBE has postponed its latest foreign-exchange auction, citing unforeseen technical issues. The NBE had previously announced on May 27 that it would conduct two foreign-exchange auctions of USD 100 million each during the fourth quarter of the fiscal year. This amount represents a significant reduction from the previous auction, which offered USD 500 million. The next auction, valued at USD 100 million, was scheduled for June 24, 2026. Demand for foreign currency remains high, with commercial banks submitting bids totaling approximately USD 1 billion in the previous auction, double the amount offered by the central bank, as the Birr continues to weaken against the US Dollar. In that auction, the weighted average exchange rate for successful bids was 159.98 Birr per dollar, with the highest successful bid at 160.90 Birr per dollar and the lowest at 157.30 Birr. Fourteen of the 30 participating commercial banks secured foreign-currency allocations.
Must ReadThe Ethiopian Capital Market Authority ECMA has granted an investment banking license to United Capital Financial Services PLC, a subsidiary of Nigeria-based United Capital Group. This marks the first time a foreign investment bank has established a subsidiary in Ethiopia, signaling increased foreign interest in the country's developing capital market. The license was issued on June 5 and announced on June 9, authorizing the company to provide services under Ethiopia’s investment banking framework. ECMA also approved five board directors and licensed four appointed representatives for the company. This development brings the total number of licensed Capital Market Service Providers in Ethiopia to 18 and raises the number of licensed investment banks to seven. ECMA Director-General Hana Tehelku described United Capital's entry as a significant milestone, reflecting growing confidence in Ethiopia’s financial sector reforms and regulatory framework. She added that it demonstrates recognition of Ethiopia’s market potential and could help deepen market capacity, improve regional integration, and strengthen investor participation. This licensing aligns with Ethiopia's ongoing efforts to operationalize its capital market and attract private investment.
Must ReadThe National Bank of Ethiopia NBE has amended its Franco Valuta Directive, permitting diplomatic missions, foreign investors, and international organizations to import fuel for their own use without relying on the Ethiopian Petroleum Supply Enterprise EPSE. This change allows these entities to use their own foreign exchange for fuel imports, bypassing the need for letters of credit from banks. The volume and value of fuel imported under this scheme will be determined by the approval of the recommending government office. This marks a significant shift, as it is the first time in recent memory that non-governmental entities can independently import and utilize fuel. While the state-owned EPSE will continue to manage fuel imports and supply for most of the market, this new directive aims to facilitate the import of essential commodities without straining national foreign exchange reserves. The directive also extends to other goods and capital items imported by international organizations, NGOs, charities, manufacturers, and exporters.